Making a will is an important aspect of estate planning, but another equally crucial aspect is the management of any life insurance policies. These can provide financial security for loved ones in the event of a person’s death, and a 40-year policy with a £250,000 final pay-out can cost as little as getting a daily newspaper delivered (Premium based on a 31 year old male, non-smoker and in good health).
However, it’s critically important to ensure that the policy forms part of a trust, rather than simply being added into a deceased person’s overall estate. By conducting a simple process known as “writing into trust”, the life insurance policy becomes part of a trust that will be paid directly to beneficiaries upon death. This means any payouts are passed onto the intended recipients far more quickly and tax-efficiently than they otherwise would be, as explained in more detail in the next section.
With many years of expertise in writing life insurance policies into trust, the Select Investment Managers team are able to explain the benefits of this tax-efficient process in concise layman’s terms. We appreciate that a little advanced planning can simplify a deeply upsetting time, as well as helping to avoid the lengthy process of probate, which is also outlined below.